KUCHING: Asteel Group Bhd expects to benefit from the recent enforcement actions by the Construction Industry Development Board (CIDB) against illegal steel imports, as well as the government’s anti-dumping measures on galvanised steel products from China and Vietnam.
The company said these actions will help promote fairer market competition and support local producers.
Last month, the Ministry of Investment, Trade and Industry (MITI) imposed definitive anti-dumping duties on imports of galvanised steel coils and sheets originating or exported from China, South Korea, and Vietnam for a five-year period from November 1, 2025, to October 31, 2030.
The decision followed an investigation that found the products were sold at unfairly low prices in Malaysia, causing material injury to domestic industry.
The duties range from 5.60 per cent to 26.80 per cent for China, 2.21 per cent to 31.47 per cent for South Korea, and 14.17 per cent to 57.90 per cent for Vietnam.
Asteel’s East Malaysia operations manufacture and sell pre-painted galvanised iron, roll-formed products, and building materials, while its West Malaysia arm produces roll-formed products and trades in coated and non-coated coils.
The group returned to profitability in the third quarter ended September 30, 2025 (3Q2025), posting a net profit of RM141,000 on revenue of RM69.5 million, compared with a loss of RM233,000 on RM64.6 million revenue a year earlier. Earnings per share stood at 0.03 sen versus a loss of 0.05 sen previously.
Group revenue rose 8 per cent or RM4.9 million year-on-year, driven by stronger sales of coil and sheet products and higher project income.
“Higher revenue and better gross profit margins from project-related revenue drove the group to profitability in the current quarter under review,” it said.
For the first nine months of 2025, total revenue climbed 8 per cent to RM194.3 million, while profit before tax rose to RM2 million – a 189 per cent improvement over a pre-tax loss of RM2.25 million in the same period last year.
Compared with the previous quarter, group revenue increased from RM67.3 million to RM69.5 million, while pre-tax profit rose 39 per cent to RM1.02 million.
“Despite the higher PBT, the profit after tax was lower than the previous quarter (RM399,000 versus RM428,000) due to non-recognition of temporary deferred tax assets during the period,” the company said.
On outlook, Asteel said it remains “cautiously optimistic” for the fourth quarter.
“Although the global steel industry continues to face uncertainties arising from weak demand in China and volatility in raw material prices, regional infrastructure spending and supply adjustments are expected to provide stability to steel prices in the near term,” it said.
“Domestically, the construction and industrial sectors are anticipated to remain active, supported by various government and private sector projects that commenced in the second half of 2025.
“These developments have contributed to higher activity levels for the group and are expected to sustain demand for building and roofing materials for the remainder of the year.
“The group expects to benefit from the recent enforcement actions by CIDB against illegal imports and the anti-dumping measures filed against China and Vietnam.”
On litigation updates, Asteel said its subsidiary, Asteel (Sarawak) Sdn Bhd (ASWK), initiated four adjudication proceedings under the Construction Industry Payment and Adjudication Act 2012 (CIPAA) against Dynaciate Engineering Sdn Bhd with total claims of RM7.7 million.
On October 6, 2025, ASWK received a favourable adjudication decision, with Dynaciate ordered to pay RM1.79 million, interest at 5 per cent per annum, and RM81,161 in adjudication costs.
ASWK has received the sum of RM1.87 million from Dynaciate.
“The remaining three cases are pending adjudication decision,” Asteel said.
